Currency volatility, also known as Foreign Exchange (FX) volatility, is the unpredictable movement of exchange rates in the global foreign exchange market. With over $5.3 trillion of USD being traded every day, this volatility can lead to large losses (or gains) in the foreign exchange market—and it is the principal cause of foreign currency risk.

The most obvious kinds of FX risks are transactional, when a company sends or receives money typically classified as accounts payable, accounts receivable or capital expenditures. Whether a company uses international suppliers or services, has offices operational in other countries or is merging with an overseas entity—there is risk of exposure to currency fluctuations.

When you operate your business globally, successfully navigating the volatile FX market is critical to your profit margins. Unless you’re allocating resources to round-the-clock monitoring of currency market swings along with the potential impacts of political, business, governmental, environmental, social forces or even just a late-night tweet—you may expose your bottom line to unnecessary FX risk. Using a combination of forecasting methods in tandem with a deep understanding of your business, Tempus helps forecast your FX exposure and better manage your global payments.

What is FX Forecasting?

One type of forecasting is called technical or chartist. This is the old school method referring back to economics class and theories requiring the use of historical data to identify patterns and cycles.

The third type of forecasting, market-based, is focused more on the current situation of the currency markets and economic sentiment including currency flows and economic data such as employment, inflation, retail sales and manufacturing indexes.

In the News

Tempus is #1 According to Bloomberg

The Top G10 Currency Forecaster for Q4 2018. We’ve earned this top spot for 4 out of the last 8 quarters—beating out more than 70 other distinguished global financial institutions.

Tempus is a Top Forecaster

Tempus also ranked first for the New Zealand Dollar, second for the Japanese Yen, fourth for the Mexican Peso, the Australian Dollar and Canadian Dollar and finally, ninth for the Swiss Franc for the fourth quarter of 2018. Our award-winning FX forecasters are laser-focused on helping companies navigate the volatile currency market efficiently and cost effectively. Tempus is committed to keeping organizations well-informed of current activity in the global markets in order to make the right decisions with optimal timing for their international payments.

We know you’ve worked hard to earn overseas profits and we’ll help you keep them. Ready to forecast your company’s FX exposure?

It’s quick and easy to get started. Fill out the form below and a Tempus market expert will connect with you shortly. Our team will work closely with you to develop a personalized strategy for your global payment & currency needs.